diff --git a/soc/arc/snps_arc_hsdk/Kconfig.defconfig b/soc/arc/snps_arc_hsdk/Kconfig.defconfig
index 105d7d62ab8..2eb157dbc76 100644
--- a/soc/arc/snps_arc_hsdk/Kconfig.defconfig
+++ b/soc/arc/snps_arc_hsdk/Kconfig.defconfig
@@ -36,6 +36,13 @@ config ARC_CONNECT
 config MP_NUM_CPUS
 	default 4
 
+if SMP
+# When SMP is enabled, use gfrc as wall clock, so sloppy
+# idle should be y
+config SYSTEM_CLOCK_SLOPPY_IDLE
+	default y
+endif
+
 if SERIAL
 
 config UART_NS16550
diff --git a/soc/arc/snps_nsim/Kconfig.defconfig.hs_smp b/soc/arc/snps_nsim/Kconfig.defconfig.hs_smp
index 4a6d3e665cb..81232589d9d 100644
--- a/soc/arc/snps_nsim/Kconfig.defconfig.hs_smp
+++ b/soc/arc/snps_nsim/Kconfig.defconfig.hs_smp
@@ -33,4 +33,11 @@ config ARC_CONNECT
 config MP_NUM_CPUS
 	default 2
 
-endif # SOC_NSIM_HS_SMP
+if SMP
+# When SMP is enabled, use gfrc as wall clock, so sloppy
+# idle should be y
+config SYSTEM_CLOCK_SLOPPY_IDLE
+	default y
+endif
+
+endif #SOC_NSIM_HS_SMP